Investigation into Union Corruption Expands to GM

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Aug. 27, 2019—A federal investigation into alleged misuse of dollars designated for employee training has expanded to General Motors, according to CNBC.

There has been a multiyear federal probe into misuse of training dollars by Fiat Chrysler and United Auto Workers. According to the report, Michael Grimes, a retired senior official with the union’s GM division, has been charged with wire fraud and money laundering for allegedly receiving $2 million in kickbacks from UAW vendors. 

Prosecutors did not identify any GM executives as being involved in the corruption, as they did with FCA.

In a statement, GM called the alleged conduct of Grimes and other union officials “deeply disturbing” and said it is “fully cooperating” with the investigation.

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